STATE BANK OF PAKISTAN (AMENDMENT) ACT, 2012

F. 22 (32)/2010-Legis.—The following Act of Majlis-e-Shoora (Parliament) received the assent of the President on the 9th March, 2012 and is hereby published for general information:—

WHEREAS it is expedient further to amend the State Bank of Pakistan Act. 1956 (XXXIII of 1956), for the purpose hereinafter appearing;

It is hereby enacted as follows:—

1. Short title and commencement.—(1) This Act may be called the State Bank of Pakistan (Amendment) Act, 2012.

(2) It shall come into force at once.

2. Amendment of Section 9, Act XXXIII of 1956.—In the State Bank of Pakistan Act, 1956 (XXXIII of 1956), hereinafter referred to as the said Act, in Section 9, in sub-section (2), for clause (c) the following shall be substituted, namely:

"(c) eight directors, including at least one from each province, who shall be eminent professionals from the fields of economics, finance, banking and accountancy, to be appointed by the Federal Government. Those appointed to the Board shall have no conflict of interest with the business of the Bank.".

3. Amendment of Section 9B, Act XXXIII of 1956.—In the said Act, in Section 9B, in sub-section (1), after clause (v) the following new clause shall be added, namely:—

"(vi) two eminent macro or monetary economists with proven record of research and teaching to be appointed by the Federal Government.'".

4. Insertion of new Section 9C, Act XXXIII of 1956.—(1) In the said Act, after Section 9B, the following new section shall be inserted, namely:—

"9C. Limitation on Federal Government borrowing.—(1) Notwithstanding anything contained in Sections 9A and 9B, the Federal Government borrowing from the Bank shall be such that at the end of each quarter they shall be brought to zero barring the ways and means limit that shall be determined by the Central Board from time to time.

(2) The debt of the Federal Government owed to the Bank as on the 30th April, 2011, shall be retired not later than eight years from that date.

(3) If any of the provisions of sub-Sections (1) and (2) are not observed by the Federal Government, the Finance Minister shall place before the Parliament a statement giving detailed justification for the said failure.".